Question 22

The buyer is the client, regardless of who pays a commission.

In this scenario, the licensee represents the buyer, making the buyer the client. The payment of the commission does not alter the agency relationship; thus, the buyer retains their status as the client.

A) The licensee is now a dual agent.

This statement is incorrect as dual agency occurs when a licensee represents both the buyer and the seller in the same transaction. In this case, the licensee is solely representing the buyer and has not entered into an agreement to represent the seller.

B) The licensee has violated Illinois Real Estate License Law.

This option is incorrect. The licensee has not violated any laws simply by representing a buyer who will pay a commission, as long as they comply with the necessary disclosure requirements and agency agreements.

C) The buyer is the client, regardless of who pays a commission.

This statement is accurate. In Illinois, the relationship between the licensee and the buyer is established by the agency agreement, which clearly states that the buyer is the client. The commission payment, whether from the buyer or another party, does not change this fundamental aspect of agency.

D) The licensee is automatically entitled to a commission from both parties.

This statement is false. The licensee is not entitled to a commission from both the buyer and the seller unless there is a specific agreement in place that allows for such compensation. In the absence of a dual agency agreement, the licensee can only claim a commission from the buyer.

Conclusion

The correct answer clearly identifies that the buyer remains the client, which is a fundamental principle of agency in real estate transactions. All other options fail to accurately represent the legal and ethical standards governing real estate relationships in Illinois, particularly regarding dual agency and entitlement to commissions.